Item I 01 ri Kevin Madok, CPA
f t4 «- Clerk of the Circuit Court & Comptroller — Monroe County, Florida
July 27, 2018
Monroe County Board of County Commissioners
Monroe County, Florida
RE: Fiscal Year 2019 Monroe County Budget
Mayor and Commissioners:
Because of the financial impacts of Hurricane Irma, this year's budget is undoubtedly the most challenging
faced by Monroe County in recent times. The large cost of the hurricane combined with the delays in FEMA
reimbursements have created liquidity challenges for the county. While I believe we have provided
adequate liquidity for the next year or so, the real challenge, in my opinion, is capturing the full cost of the
hurricane to the county. By this, I mean, budgeting for the costs that eventually will not be eligible for
reimbursement;
I would like to suggest the following three points be considered as you finalize the budget over the next
month:
1. OMB has done a good job identifying required FEMA grant match and building the match requirements
into the budget. However, there remains tremendous risk to the budget from potential FEMA
reimbursement denials. My understanding is that when FEMA makes a determination of denial, there
is little room for negotiation. Last I checked, denials were running about 4% of requests. I suggest a
reserve be built into the budget to allow for FEMA reimbursement denials. The risks to the budget
from this are unknown but potentially devastating. The delays in FEMA reimbursements only heightens
my concerns. An allowance would not eliminate this risk but at least provide a cushion in the budget.
2. County staff are pursuing numerous grants across virtually all departments. I am not sure all the efforts
are documented in a central point. If not, I would suggest all grant efforts be documented on a single
report. The grants should be categorized into three levels: highly likely, possible, or unlikely but being
pursued. The amount of required match and its source should be documented. Finally, the report should
note whether or not the match is built into the current budget.
3. Though not directly related to the hurricane, initial reviews by my office of the Five -Year Capital Plan
have me concerned that the plan may be overextended. Surtax revenue estimates are aggressive,
budgeted reserves are minimal and unappropriated fund balance may not be adequate. The plan should
receive close scrutiny and possible revisions as you finalize the budget.
If you should have any questions, please do not hesitate to contact my office. Finance Director Pam Radloff
can be reached at (305)292 -3560 or at nradlo f monroe- clerk.co n if I am not available.
Sincerely,
<1.1/1;K,VM
Kevin Madok, P
k, C A
Monroe County Clerk of Court & Comptroller
Cc: Roman Gastesi
Robert Shillinger
Tina Boan
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